Terrorism Insurance Loan Program Clears Committee.(U.S. House Financial Services Committee)(Brief Article)

National Underwriter Property & Casualty-Risk & Benefits Management, November, 2001 by Brostoff, Steven

The U.S. House Financial Services Committee has approved a terrorism insurance assistance plan based on federal loans that private insurers would have to repay. The legislation, H.R. 3210, which was approved late last Wednesday by voice vote, has received somewhat tepid support from the insurance industry, which argues that it might not be enough to bring capacity to the market.

But Committee Chairman Mike Oxley, R-Ohio, called the legislation a "pro-taxpayer, pro-consumer proposal." "We have passed a backstop, not a bailout," Rep. Oxley said. "By demanding that every dollar of American taxpayer assistance be repaid, we are providing a helping hand, not a handout." Rep. Richard Baker, R-La., the primary co-sponsor of H.R. 3210, said that the committee...

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